China Starts Reform Boosting Guangdong Party Boss Wang’s Profile

Aug. 23 (Bloomberg) -- Guangdong Communist Party Secretary
Wang Yang, vying for a spot on China’s top decision-making body,
won approval for a program aimed at cutting red tape as part of
his push to reduce central control of the economy.

Government approval won’t be needed in cases when
“individuals and companies can make their own decisions” and
industries can regulate themselves, the State Council said
yesterday in a statement. The reforms are aimed at the economy,
smaller businesses and private investment, the State Council
said, without giving further detail.

“Guangdong is at the frontier of reform and opening up,”
the State Council said. “Carrying out the pilot reform program
in Guangdong has important significance for pushing forward the
reform of the administrative system.”

Wang, a candidate for inclusion in China’s Politburo
Standing Committee, has championed such reforms since he took
over as Guangdong’s top official in 2007. By contrast, Bo Xilai,
also seen as a candidate for the Standing Committee before his
ouster in March, advocated a model with more state involvement
while he governed the municipality of Chongqing.

“Without the current local government led by Wang Yang,
the pilot program wouldn’t exist,” said Ding Xueliang, a social
sciences professor at the Hong Kong University of Science and
Technology. “It’s also a signal that the central government
favors a more relaxed market economy compared with the Chongqing
model.”

Heywood Scandal

The program comes as the Communist Party prepares for a
once-a-decade leadership transition later this year. Bo was
ousted amid a scandal surrounding the November killing of
British businessman Neil Heywood. Bo’s wife was convicted this
week of murdering Heywood and sentenced to death with a two-year
reprieve.

Wang has gained a reputation as a political and economic
reformer during his four years in charge of Guangdong, the
province with the largest economy in China that is one of the
world’s biggest manufacturing centers.

State-controlled media also praised Wang for peacefully
settling a December uprising in the fishing village of Wukan
that saw residents expel local party officials. The resolution
became a potential model for ending such disputes in the future.